Experts in the Mid-Peninsula housing market point out that a lack of tax incentives and homeowners’ reluctance to abandon previously low-interest mortgages have led to a reduced inventory of homes available for sale. Michael Dreyfus, the Managing Director of Golden Gate Sotheby’s International Realty in Silicon Valley, notes that despite these challenges, there is a strong demand for reasonably priced, well-located, and well-maintained properties.
Dreyfus highlights that the luxury real estate segment, particularly homes priced between $7 million and $10 million, as well as those exceeding $20 million, is experiencing a very active sales pace.
Elyse Barca, a real estate agent specializing in luxury properties at Compass Real Estate in Menlo Park, emphasizes that there are many qualified buyers in the market and anticipates a more vibrant fall season compared to last year, although inventory shortages remain a significant concern.
The condo market is also showing signs of recovery. Barca mentions that condos have bounced back from the pandemic’s lows, with high-quality single-family homes in the area being rapidly snapped up. In fact, condo and townhome prices in Santa Clara have now surpassed those in the traditionally pricier San Mateo, with Santa Clara’s median sale price reaching $1 million compared to San Mateo’s $937,000, as noted by Jasmine Lee, a sales associate at Coldwell Banker Realty in Menlo Park.
Regarding the impact of the elections on the housing market, Barca’s colleague, Nick Granoski, disagrees with the notion that the November 5 elections will affect real estate prices, suggesting that prices will remain relatively stable this fall.
Denise Welsh, Assistant Sales Manager at Compass Real Estate’s Los Altos office, observes that multiple offers on properties have become quite common in recent months, and entry-level homes continue to be in high demand.
The recent changes in commission rules have also introduced new incentives for sellers by lowering the commission they need to pay. The new guidelines have ended a decades-long practice that required sellers to pay 5-6% of the sale price as commission for both parties’ agents. Under the new rules, agents are now required to secure a written agreement with the buyer before showing properties to establish their compensation.
Lee predicts a slight increase in inventory this fall and expects fourth-quarter market activity to surpass last year’s levels, with buyers showing high interest across the spectrum from condos to luxury homes. While some homeowners may delay listing their properties due to the upcoming elections, Lee believes this will not have a significant impact on the market, as there will always be sellers who need to list their homes for personal reasons.
